Examining Marks And Spencer Group Plc Business Essay

Examining mark And Spencer concourse Plc work EssayThis report examines the attach and Spencer Group Plc. It begins with the main objectives and inclination of the judicature and accompanys with the key features of the organisations Business surround. It then goes on to analyse the electrical shock of European economic and political integration in terms of pot. label and Spencer Group Plc was founded in 1884 by Michael Marks with the opening of a centime Bazaar stall at Leeds Kirkgate Market. Today it is one of the UKs leading retailers with all over 600 stores nationwide. In addition to its successful UK business it holds an expanding international business which comp upraises of over 295 stores throughout 41 territories.Marks and Spencers event business is general merchandising (clothing and home) and food. Its main competitors atomic number 18 Waitrose, Tesco, Asda and Primark.2. Define, list and explain the main objectives and purpose of the organisationMarks and Sp encer has five key principals which define how it runs its business these argon feelingValueServiceoriginationTrustThese five principals are cardinal to the success of the business and they remain as important today as they have done over the past 125 years.Marks and Spencers core objective is to ensure their mug will continue to offer Quality, Value, Service, excogitation and Trust.One of the aims of the business is to improve value, without compromising on spirit.Mark and Spencers upmost priority is to lead the business through the recession whilst continuing to gift for the long term. Six objectives were put in place in November 2008 In order to achieve this and are as act onRetain their foodstuff leading position in GMImprove their performance in foodDrive their international businessOptimise margins and tightly guard costMaintain a strong balance sheet embolden amply ethical standardsMarks and Spencer intend to be the worlds most sustainable business by 2015. This tar get is to be achieved through their Plan A commitments.(187)3. Identify and explain the key features of the Business EnvironmentThe Business Environment is a combination of internal and external factors that affect an organisations ability to operate, recruit and continue to exist. The Business Environment can be divided into the micro-environment which consists of customers, employees, suppliers, shareh quondam(a)s, media and competitors and the macro-environment which includes regulations, political science activities, the economy, demographics, social and cultural factors, innovations, and technological developments.In order to ascertain the Business Environment of an organisation a number of strategic tools can be used. A SWOT analysis can be effective in identifying an organisations strengths, weaknesses, opportunities and threats, whilst a PESTLE analysis can be valuable in analysing an organisations macro-environment.(106)SWOT analysis of Marks and Spencer Group PlcStrengths WeaknessesUnrivalled reputation for Quality, Value, Service, Innovation and TrustUKs biggest clothing retailerTop UK retail websiteDiverse localize of products clothing , food and wine, home and furniture, technology, flowers and gifts and financial productsLeading premium quality food retailerBrand awarenessConsumers perception of MS is that their products are loftylypricedConsumers perception of MS is that they are not always in touch with the latest fashion trendsReduction in money tail guarantee whilst competitors are increasing theirsLeading shareholders furious over roseate and Bolland salary packagesOpportunitiesThreatsGrowth of international marketplaces in particular IndiaThe world has an senescence people M Ss core target market is already the older generationProduct diversification into Home Energy Services, Telecoms and MS-branded cosmeticsAbility to nark new target market through new advertising campaigns aimed at younger generation sparing conditions remai n uncertainDecline of the high street due to consumers doing more of their shopping online contention product ranges which instantaneously compete with M S food such as Tesco finestCompetitor Asda to offer 100 day money back guarantee on its George clothingTakeover bids(204)PESTEL analysis of Marks and Spencer Group PlcPolitical pigment political factors that are of relevance to Marks and Spencer are as followGovernment type and stabilityThe imminent general elections are to virtually extent going to leave many businesses feeling a high degree of uncertainty. Trading will get tougher this year as taxes rise and public spending falls to bring down government debt.(51)Economic divulge economic factors that are pertinent to Marks and Spencer are as followEconomic conditions affect how easy or how difficult it is to be successful and profitable at any time because they affect some(prenominal) capital availability and cost, and demand.(28)SocialKey social factors that are relevant t o Marks and Spencer are as followAging populationMarks and Spencers has always been seen as an organisation whose target market is the older generation. The population of the UK and the world in general is continuing to age. record 1 down the stairs shows the increase in which the UK population will age by 2033.(46)Figure 1AgeingFastest increase in the oldest old existence by age, UK, 1983, 2008 and 2033Office for National Statistics (2009)TechnologicalKey technological factors that are relevant in assessing Marks and Spencer are as followMarks and Spencer were the premier(prenominal) company in the world to use revolutionary split trucks. The trailers are capable of carrying up to 16% more load and the silky shape offers a 10% reduction in fuel consumption. absquatulate solid ink technology helps Marks and Spencer with Plan A commitments.(49)environmentalKey environmental factors that are relevant to Marks and Spencer are as followWeatherAdverse weather conditions in the UK ha ve had a devastating effect on businesses up and down the country.(18)LegalKey legal factors that are relevant to Marks and Spencer are as followEU legislation has recently been introduced to protect theMarks and Spencer has become the first high-profile retailer to be hit by new Prosecco regulations after 14,400 bottles of its Rosecco brand were seized.The market structure of Marks and Spencer can be considered as spotless competition. (13)PORTERS 5 FORCES analysis of Marks and Spencer Group PlcCompetitive rivalry inwardly the industryThreat of new entrantsCortefiel launching standalone stores in competitive UK market(8)Bargaining power of suppliersBargaining power of customersThreat of substitutes4. Analyse the tint of European economic and political integration in terms of trade5. Conclusions